Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
1 r# n5 N3 [7 ]; v" [expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
! q0 f' E+ l4 `4 S* m/ P" x# Xthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
" \: [! y4 z' @4 B( \2 REXXON, BG, BP, Cheveron ....xyz.. oils
* Z5 Q2 G& g4 l3 N' a, e$ m7 y
, [, f! _- j# a" o, {1 K6 }* q& VRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
; J7 s8 i: a' Kleast $50.00 per barrel. Today, oil price declined by a record amount.

, U( e2 h+ S2 z6 c% @, c
- F. C: B' ], }& e) ZThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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/ [4 r0 z% L- C8 x/ Y9 ?2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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# W, K0 M7 I  a& M8 b3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
1 p% O' z8 }$ jfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
! Y- j5 F3 ?) h( k4 W8 eare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


2 \# I- y& K% a6 ^6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
, T9 Y1 I+ T$ [" h; D- Kexpected to be built in the future. Much of the energy they produce
4 q. C3 z8 J5 U/ A$ k  T, Pwill replace oil.
5 Q$ L4 f0 z( o3 m1 \* V1 e

7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
( X6 ?/ G( z9 _& A) }$ hwith new more fuel efficient equipment. Airlines and railway companies
7 Q5 o$ B- |$ M! t+ F: Qare experiencing 20% to 25% better fuel econony with the new
8 V6 i5 A" l) V9 F( t5 R& P/ t* Bequipment.
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# N% ^# T3 X1 k! IAirlines are flying airplanes with bio-fuel. They are finding the bio-
% E2 l! n: x2 d& H* zfuel is cleaner and performs better than jet fuel.


0 W% ~& p' y0 @$ n; [6 d8. Cities and counties throughout the US are selling the rights to
0 n( {; j2 x. F& X* ~capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
: C; Y7 I9 j" v. g& ]* Woil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
( I7 O2 k2 t! c% W+ h) Gproduced as a byproduct is sold to oil companies for injection into
9 j5 B. [% o4 E/ Ioil wells.


' F/ w- D4 \4 M2 d4 Z10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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2 S( w$ Y" Z; x6 t1 ^Each of the above by itself will not make a large difference in the
, H9 `+ B/ Y9 i6 fprice of crude oil but the sum of all of them together is world
7 R6 K/ Z, J7 N% R+ Achanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
  F" T' ~0 `1 s- ?: ?value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
& K- A) X. E# @& Q6 b7 d2009 ... FYI-Only